GVK Power & Infrastructure Ltd is in parleys to divest stake in its airport vertical and expects to close a deal before September.
At least five interested parties have evinced in picking up stake. Those in the fray include Changi of Singapore, three other strategic investors and a financial investor, according to Isaac A. George, Finance Head of GVK Group.
“Of the three, we have had term sheets from two potential investors. Recently, two others have evinced interest in taking a stake in the company’s airport vertical. Once valuations are concluded, we expect to finalise the right partner,” he said after the company’s annual general meeting here.
The company has total debt of about Rs 18,000 crore and this includes commitments of about Rs 3,000 crore at the holding company level. Rest is on the special purpose vehicles.
“By divesting stake in the airport vertical, we will be able to raise about Rs 2,500 crore. This will totally remove the debt at the holding company,” he explained.
In the past too, the stake divestment talks were on for the airport vertical. However, they could not be concluded.
DEBT REJIG
The company has initiated talks with IDBI and IDFC to restructure its loans relating to gas-based power plants. Of the three gas-based power plants, only the Jegurupadu unit I is functioning.
Rest of the two projects, Jegurupadu expansion and Gauthami have been impacted. Both units are not functioning as there is no gas supply from the KG-basin.